The property cash flows at a 15% ROI…………………..before insurance, debt service, utilities, management, vacancies, repairs, maintenance, payroll and property taxes7.

If it is in San Diego, it will likely be a sophisticated value add and not passive.So if you house hack a local property at high LTV, recognize it will cost you significantly more than renting a similar unit.  

Generally there is consensus that DSCR Lenders can only offer a 1% prepayment penalty for up to 3 years in MI, but some lenders have recently reportedly been flaunting this rule - I would just tread carefully here in this area, generally not advisable to get potentially tangled up in a flawed legal doc with a non-sophisticated or fly by night lender

I think the truth that your post brings is in the level of sophistication and market insights of the investors and investment sponsors that are prevalent on these forums, the amount of money we are talking about, and the general idea that real estate, even when directly owned, is passive in nature.

If you have enough unit it will make sense to have cleaner on your payroll but to starting off, most common sense is to find a very high quality, reliable cleaner that works with your budget.

I've owned a Payroll/HR/HCM company for the last 15 years and am now looking to transition my time and resources to help my son with his new Wholesaling and Real Estate Investment company. 

I bet it would be clean and sophisticated, no ?

For small projects and so for the vast majority of sophisticated investors, the DLT is years away.

It would be overwhelming to pay for advanced training in a high-performance, sophisticated, multi-engine fighter jet when you're still trying to land the airplane safely.

They have ways now to know where the oil is under the ground that are more sophisticated than random wildcat drilling.